What’s a 10 Year New Home Warranty and Why Do I Need It?

Your home is one of the largest investments of your life! If you bought a new, big-screen TV, and 8 months later, it stopped operating, would you expect the manufacturer to fix it? Of course you would, because you received a written warranty that stated the TV would work for longer than 8 months. So why would you accept a 1-year implied warranty on your new home? It only makes sense to ask your builder to provide a limited written 10-year warranty from American eWarranty.

Man reading his warrantyWHAT A WARRANTY IS:

When your home is being built, you trust that your builder is doing high quality work in the basics of laying the foundation, pouring the walls, building the framing and other structural aspects. If your builder verbally implies that he will warrant his work, you have no real protection if something goes wrong. A far better choice is to have a written, expressed limited warranty, such as American eWarranty’s 10-year Warranty. In our warranties, you know exactly what is covered, how long it is covered and how to get help if you need it. In addition, we offer both warranties approved by HUD for FHA/VA loans and for conventional loans.

With the standard 10-year new home warranty, the builder agrees to correct defects in workmanship and materials as specified in the written warranty. Generally, this addresses call-back items typical in a new home (often referred to as a 30-day or 11 month punch list.)

Keep in mind that it is a limited warranty, not a maintenance contract. Homeowner obligations and responsibilities are clearly stated. This will help you know how to handle any problem which might arise.

In the second year, defects to the delivery portions of these major systems are warranted: pipe system, septic system, electrical wiring system and HVAC ductwork.

Specific structural defects are warranted for 10 years. Be sure to refer to the specific warranty provided by your builder for details of the warranty, including definitions, exclusions and limitations that apply.


An expressed written warranty from American eWarranty will give you wonderful peace of mind. You know exactly what will be covered by the warranty and for how long. You can also see what items are considered homeowner maintenance.

Even quality builders can fail financially for reasons beyond their control. If your builder goes bankrupt, American eWarranty’s insurance carrier steps in to cover the builder’s warranty obligations.

Our warranties are completely transferable. If you decide to sell your home within the first 10 years of your home ownership, the remaining portion of the warranty automatically transfers to the subsequent owner. This transfer-ability makes your home more appealing when it’s placed on the market.

Finally, if a future impasse should arise between you and your builder, the warranty includes an arbitration process to resolve the issue(s), saving you litigation expenses.

Don’t forget – our warranties are HUD, FHA/VA and USDA-approved, saving you and your builder time and money!

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